OMC, Rungta hike iron ore lump rates on lower output

Odisha Mining Corporation (OMC), which decides mineral prices in the state through quarterly auction process, has raised iron ore lump prices by Rs 350 per tonne for April-June period after fall in ore production.

The state-run trading agency raised prices of ore with 62 per cent iron content in Koira circle to Rs 6,002 per tonne, up from Rs 5,751 per tonne quoted in the Jan-Mar quarter. Similarly, the rate of 65 per cent grade iron ore has been increased by Rs 1,100 per tonne to Rs 7,611 a tonne.

However, OMC did not announce prices for lumps produced in the Barbil area, accounting for more than one-fifth of all India iron ore output, for the April-March period.

A senior OMC official said the rates could not be provided due to non-availability of auction data. But trade sources said, OMC chose not to display Barbil iron ore prices on its quarterly rate chart due to lower number of bidding amid drop in production.

In a separate announcement, Rungta Mines Ltd, one of the largest iron ore miners in the state present in Keonjhar district, raised its iron ore lump rates by Rs 350 per tonne citing lower output.

According to provisional data obtained from the steel and mines department, Government of Odisha, the state produced about 56.14 million tonne iron ore upto January 2012. During 2010-11, iron ore output stood at 70 million tonne, they said.

Iron ore output declined in the state in 2011-12 due to less evacuation of mined ores as the state government introduced new norms for transportation by road, thereby bringing truck transport of mineral to a halt since last September, traders alleged.

Iron ore fines rate at main trading hub Barbil has been hovering around Rs 2,700 per tonne for past one and a half month, up from Rs 2,250 quoted three months ago due to lower availability, they said.